Put Your Money Where Your Mouth Is

For your assignment, you will select a stock and determine the historical volatility of the stock.

Part One—Gather Your Data

Select a stock that you'd like to learn more about. Then, select a range of time and gather historical closing price data for the stock. Remember, websites like Nasdaq and Fidelity are great places to start. Be sure to get stock prices from at least 10 or more dates to support your analysis. Keep your data set and sources; you'll submit it as part of your assignment.

Part Two—Analyze Your Data

Find the following based on your data set. Keep your calculations; you'll submit them as part of your assignment. Remember to round your calculations to the nearest ten thousandth.

• Mean monthly return
• Variance
• Volatility

Part Three—Reflection

Based on your calculations and what you know about the stock, would you risk investing in the company? Why or why not?